Understand property tax in Singapore: Annual Value, 2026 residential and commercial rates, calculations, payment deadlines, appeals and business accounting.
TLDR: - Singapore property tax is an annual tax on property ownership. - IRAS calculates the tax by multiplying the property’s Annual Value by the applicable tax rate. - Commercial and industrial properties are taxed at 10% of Annual Value. - Residential rates depend on Annual Value and whether the owner occupies the home. - Property owners generally pay the annual bill by 31 January or follow an approved GIRO plan.
In 2026, Singapore property tax remains an annual ownership tax administered by IRAS. Property tax in Singapore is an annual tax on the ownership of immovable property, whether the property is owner-occupied, rented out or vacant. The Inland Revenue Authority of Singapore (IRAS) calculates the tax by multiplying the property’s Annual Value by the applicable property tax rate. Commercial and industrial properties are taxed at 10% of Annual Value, while residential properties use progressive rates based on occupancy status. Business owners should therefore budget for Singapore property tax as a recurring ownership cost rather than a tax triggered only when rent is earned. IRAS explains the scope of property tax and Annual Value.
What is property tax in Singapore?
Property tax in Singapore is a recurring tax imposed on the ownership of land and buildings.
Property tax applies to residential, commercial and industrial property. Property tax remains payable when a property is occupied by its owner, leased to a tenant or left vacant. The tax attaches to ownership rather than to the amount of rent actually received.
IRAS administers property tax under Singapore’s property tax framework. IRAS issues the valuation and tax notices, determines the Annual Value, applies the relevant rate and collects payment from the registered property owner.
Terms such as Singapore real estate tax, real estate tax Singapore, SG property tax and property tax SG generally refer to this same annual ownership tax. Singapore property tax is distinct from stamp duty, income tax and Goods and Services Tax (GST).
Who must pay property tax in Singapore?
The registered owner of a property is responsible for property tax in Singapore.
Individual owners, companies, trustees and other registered owners may receive property tax bills. A tenant does not become liable to IRAS merely because a lease requires the tenant to reimburse the owner for property tax. The lease determines the commercial allocation between landlord and tenant, while the registered owner remains accountable to IRAS.
Joint owners should review the recipient named in the property tax notices and maintain clear payment records. Corporate groups should also confirm which legal entity owns each property because the expense, liability and supporting documents belong in that entity’s accounts.
Property ownership changes do not cause IRAS to apportion the annual tax between buyer and seller. Conveyancing lawyers usually calculate the parties’ economic shares at completion, and the sale contract governs reimbursement.
How does IRAS calculate property tax?
IRAS calculates annual property tax by applying the relevant tax-rate bands to the property’s Annual Value. IRAS publishes the calculation method and current rate schedules.
- Identify the property’s Annual Value. The owner can view the current Annual Value through the property services in myTax Portal.
- Determine the property classification. The applicable category is owner-occupied residential, non-owner-occupied residential or non-residential.
- Apply each relevant rate band. Residential property rates are progressive, so different portions of Annual Value may be taxed at different percentages.
- Apply any current rebate or remission. Temporary rebates and statutory remissions are separate from the standard rate calculation and may change through annual Budget measures.
- Reconcile the result to the IRAS bill. Finance teams should compare the billed amount with the Annual Value, occupancy status, rate bands and effective dates shown on the notice.
The core formula is:
Annual property tax = Annual Value × applicable property tax rate or progressive rate bands
The formula uses Annual Value rather than purchase price, market value, mortgage balance, accounting carrying value or actual annual rent.
What is Annual Value and how does IRAS determine it?
Annual Value is the estimated gross annual rent a property could command if it were rented out, excluding furniture, furnishings and fittings.
IRAS assesses Annual Value using rental evidence from comparable properties. Relevant characteristics can include location, property type, size, condition and physical attributes. Actual rent under an existing lease may differ because the contract could have been signed before market rents changed or could contain property-specific commercial terms.
Owner occupation does not reduce Annual Value to zero. Vacancy does not reduce Annual Value to zero. A property retains an assessable rental value even when the owner receives no rent.
IRAS may revise Annual Value when market rental evidence or the property’s physical circumstances change. Renovation, redevelopment, a change of use or a significant shift in comparable rents can therefore affect future bills.
What are the owner-occupied residential property tax rates?
Owner-occupied residential property uses progressive rates from 0% to 32% for the rate schedule effective from 1 January 2025. Owner-occupier rates apply only when the registered owner resides in the residential property and satisfies the applicable conditions. IRAS publishes the current residential rate bands.
| Portion of Annual Value | Rate effective from 1 January 2025 |
|---|---|
| First $12,000 | 0% |
| Next $28,000, from $12,001 to $40,000 | 4% |
| Next $10,000, from $40,001 to $50,000 | 6% |
| Next $25,000, from $50,001 to $75,000 | 10% |
| Next $10,000, from $75,001 to $85,000 | 14% |
| Next $15,000, from $85,001 to $100,000 | 20% |
| Next $40,000, from $100,001 to $140,000 | 26% |
| Annual Value above $140,000 | 32% |
A qualifying owner-occupied home with an Annual Value of $84,000 incurs $5,480 before any applicable rebate: $0 on the first $12,000, $1,120 on the next $28,000, $600 on the next $10,000, $2,500 on the next $25,000 and $1,260 on the remaining $9,000.
Owner-occupier rates are not available merely because a director, employee, relative or tenant lives in a property. The owner recorded for property tax purposes must satisfy the residence requirements.
What are the non-owner-occupied residential property tax rates?
Non-owner-occupied residential property uses progressive rates from 12% to 36% under the schedule effective from 1 January 2024. The category generally covers rented homes, investment properties and vacant residential properties. IRAS provides the applicable bands and sample calculations.
| Portion of Annual Value | Rate effective from 1 January 2024 |
|---|---|
| First $30,000 | 12% |
| Next $15,000, from $30,001 to $45,000 | 20% |
| Next $15,000, from $45,001 to $60,000 | 28% |
| Annual Value above $60,000 | 36% |
A non-owner-occupied residential property with an Annual Value of $54,000 incurs $9,120 in annual property tax. The calculation is $3,600 on the first $30,000, $3,000 on the next $15,000 and $2,520 on the remaining $9,000.
Vacancy does not create a property tax exemption. A vacant residential property is generally taxed at non-owner-occupier residential rates because the registered owner does not occupy it.
What is the property tax rate for commercial and industrial property?
Commercial buildings, industrial buildings and non-residential land are taxed at 10% of Annual Value. Owner-occupier residential rates do not apply when a business purchases an office, factory, warehouse or other non-residential property for its own operations. IRAS confirms the 10% non-residential rate.
| Non-residential property | Illustrative Annual Value | Rate | Annual property tax |
|---|---|---|---|
| Office unit | $72,000 | 10% | $7,200 |
| Retail unit | $120,000 | 10% | $12,000 |
| Factory or warehouse | $240,000 | 10% | $24,000 |
| Vacant commercial property | $60,000 | 10% | $6,000 |
A business that occupies its own commercial premises still pays the 10% rate. Actual operational use does not convert a commercial property into an owner-occupied residential property.
A shophouse or shopflat with distinct residential and commercial components may be assessed by component. The residential portion follows the relevant residential rates, while the commercial portion remains subject to the 10% non-residential rate.
How should a business estimate property tax before buying premises?
A business should verify Annual Value, apply the correct rate and include the result in its acquisition and cash-flow model.
- Confirm legal ownership and approved use. The title, planning use and property tax classification may affect the applicable rate and accounting entity.
- Obtain the current Annual Value. The current bill or an authorised IRAS search provides a stronger basis than estimating from sale price.
- Review pending valuation changes. Recent construction, refurbishment, subdivision or a change of use may lead to a revised Annual Value.
- Calculate the annual tax. Most commercial and industrial property models can apply 10% to Annual Value.
- Check sale-completion apportionment. The conveyancing statement should allocate the current year’s property tax between buyer and seller under the sale agreement.
- Separate other acquisition taxes. Buyer’s Stamp Duty, Additional Buyer’s Stamp Duty, Additional Conveyance Duties and GST are separate issues and should not be folded into the property tax estimate.
- Model future increases. Annual Value may change when market rental evidence changes, so a multi-year forecast should include an appropriate sensitivity rather than treating the first bill as permanently fixed.
What does a commercial property tax example look like?
A company buying an office with an Annual Value of $180,000 should initially budget $18,000 a year for property tax at the 10% non-residential rate.
An anonymised Singapore company purchases an office unit for its own operations. The purchase price is $3 million, the Annual Value is $180,000 and the completion date falls halfway through the calendar year.
The purchase price does not determine the annual property tax. The calculation is $180,000 × 10% = $18,000.
The company records approximately $1,500 of property tax expense per month for management-accounting purposes when straight-line recognition appropriately reflects the period covered. The completion account allocates the current year’s tax between the seller and buyer according to the contractual arrangement.
The finance team separately records stamp duty and other acquisition costs because those amounts follow different accounting and tax rules. The finance team also retains the IRAS bill, completion statement and proof of payment as supporting records.
When is property tax due and how can businesses pay?
The annual property tax bill is generally due by 31 January or by the specific due date stated on the IRAS bill.
IRAS usually issues annual bills before the payment deadline. Owners can review property details, notices, account balances and payment arrangements through myTax Portal.
GIRO can provide a one-time deduction or monthly instalments under the prevailing arrangement. Other electronic payment methods may also be available through IRAS. A finance team should verify that the payment has been posted to the correct property tax reference number.
A pending Annual Value objection does not suspend the payment obligation. The owner must pay the assessed amount by the due date, and IRAS can refund or offset an overpayment if the assessment is subsequently reduced.
Late payment can result in penalties and recovery action. Businesses should therefore maintain a property register containing each property’s reference number, bill date, due date, payment method and responsible employee.
How can an owner object to the Annual Value?
A property owner can object to the proposed Annual Value or its effective date by submitting evidence to IRAS within the applicable deadline. IRAS states that an objection to a proposed Annual Value may be filed within 30 days from the date of the Valuation Notice.
- Read the Valuation Notice. Confirm the assessed Annual Value, effective date and objection deadline.
- Identify a valuation-based ground. Comparable market rents, incorrect property attributes or an inappropriate effective date may support an objection.
- Gather relevant evidence. Useful material can include comparable rental evidence, floor plans, tenancy documents, photographs and records of physical changes.
- State the requested Annual Value. The objection should specify the value and effective date sought rather than merely asserting that the bill is expensive.
- Submit the objection through the IRAS digital service. The owner should retain the acknowledgement and supporting documents.
- Pay the existing assessment. Property tax remains payable while the objection or any subsequent appeal is outstanding.
High tax rates, financial hardship and the absence of actual rental income are not valuation evidence. An objection should address Annual Value or its effective date rather than challenge rates fixed by law.
How is property tax different from rental income tax and stamp duty?
Property tax taxes ownership, income tax taxes rental earnings, and stamp duty taxes specified documents or transactions.
| Charge | Tax base or trigger | Typical responsible party | Recurrence |
|---|---|---|---|
| Property tax | Annual Value of owned property | Registered property owner | Annual |
| Income tax on rent | Net taxable rental income | Person or entity earning the rent | Each applicable tax year |
| Buyer’s Stamp Duty | Acquisition document and property value rules | Buyer | On acquisition |
| Seller’s Stamp Duty | Disposal within an applicable holding period | Seller | On applicable disposal |
| GST | Applicable taxable supply under GST rules | Supplier accounts for GST, subject to the transaction | Transaction-based |
Property tax remains payable even when the property produces no rental income. Rental income must be considered separately for income tax purposes when a property is leased. IRAS distinguishes property tax from income tax on rental earnings.
A landlord may be able to claim property tax attributable to a tenanted property when calculating taxable rental income, subject to the applicable rules and period of tenancy. IRAS explains the treatment of rental income and related expenses.
A lease clause requiring a tenant to reimburse property tax affects the commercial arrangement between the parties. The clause does not convert property tax into rent or transfer the registered owner’s liability to IRAS.
How should companies account for property tax?
Companies should recognise property tax in the period to which the bill relates and retain a clear reconciliation to the IRAS assessment.
An annual bill commonly supports monthly accruals across the relevant calendar year. An unpaid amount at the reporting date is generally recorded as a liability, while an amount paid in advance may require appropriate prepayment treatment.
Corporate income tax deductibility requires a separate analysis. Property tax incurred to produce rental or business income may be deductible when the relevant statutory conditions are satisfied, but financial-statement recognition does not automatically establish tax deductibility.
Investment-property owners should reconcile gross rent, service charges, property tax, financing costs and other property expenses by asset. Owner-occupiers should allocate property costs consistently to the relevant cost centre or operating entity.
Businesses with multiple sites should maintain a schedule showing legal owner, address, property type, Annual Value, applied rate, annual bill, payment status and any valuation objection. The schedule provides an audit trail and reduces the risk of duplicate, late or incorrectly allocated payments.
What property tax mistakes should business owners avoid?
Business owners should avoid using purchase price as the tax base, confusing property tax with rental income tax and overlooking changes in Annual Value or use.
A purchase price does not replace Annual Value in the property tax formula. A high-value property can have a relatively modest Annual Value, while a lower-priced asset can carry a substantial Annual Value because of its rental characteristics.
A vacant property does not automatically receive relief. Residential vacancy generally attracts non-owner-occupier residential rates, while vacant non-residential property remains subject to 10% of Annual Value.
A pending objection does not postpone payment. The assessed bill remains payable until IRAS revises it.
A lease recovery does not eliminate the owner’s compliance responsibility. The owner should pay IRAS and account separately for any amount recovered from the tenant.
A sale does not cause IRAS to divide the current year’s bill between the parties. The lawyer’s completion account should document the contractual apportionment.
A change from residential to non-residential use can affect the rate and notification obligations. Property owners should review the tax position whenever approved use or occupation changes.
How can E&H Corporate Services support property-owning businesses?
E&H Corporate Services can help businesses integrate property tax bills into their accounting, tax and compliance processes.
Property tax support for Singapore businesses E&H Corporate Services can reconcile IRAS property tax notices, prepare accounting schedules, review rental-income records and coordinate the tax treatment with corporate income tax and GST reporting. E&H Corporate Services can also support company incorporation, corporate secretarial compliance, bookkeeping, payroll and tax advisory requirements as a business expands its premises or property portfolio. Property valuation objections and conveyancing issues may require input from qualified valuers or lawyers. E&H Corporate Services can help organise the financial records and identify the matters that require specialist advice.
What are the most common questions about property tax in Singapore?
The following answers address common Singapore property tax questions from owners, founders and finance teams.
What are property taxes in Singapore?
Property taxes are annual ownership taxes calculated from a property’s Annual Value and the applicable residential or non-residential rate.
What is the commercial property tax rate in Singapore?
Commercial and industrial properties are taxed at 10% of Annual Value.
Is property tax based on the purchase price?
Property tax is based on Annual Value, not the property’s purchase price, mortgage balance or accounting value.
Does a vacant property incur property tax?
A vacant property remains subject to property tax because liability arises from ownership rather than occupation or rental income.
Does a company pay property tax on an office it occupies?
A company-owned office remains subject to the 10% non-residential rate even when the company uses the premises for its own operations.
Is rental income tax included in property tax?
Rental income tax is separate because property tax applies to ownership while income tax applies to taxable rental earnings.
Can a tenant pay the owner’s property tax?
A lease may require reimbursement by the tenant, but the registered owner remains responsible for the property tax account with IRAS.
Can an owner challenge a high property tax rate?
An owner may object to Annual Value or its effective date, but statutory tax rates are not grounds for an Annual Value objection.
Must property tax be paid during an objection?
Property tax remains payable while an objection or appeal is outstanding.
When is annual property tax due?
Annual property tax is generally due by 31 January or by the due date stated on the IRAS bill.
Can property tax change from year to year?
Property tax can change when Annual Value, occupancy status, statutory rates, rebates or remissions change.
Is property tax deductible for a company?
Corporate income tax deductibility depends on how the property is used and whether the expense satisfies the applicable deduction rules.
